A reduced benefit charge may apply to vans which cannot emit CO2 when driven.

Van benefit: £3,350 (2017/18: £3,230)

Fuel benefit: £633 (2017/18: £610)

Advisory Fuel Rates for Company Cars

Advisory rates only apply where employers reimburse employees for business travel in a company car or require employees to repay the cost of fuel used for private travel in a company car. If the rate paid per mile of business travel is no higher than the advisory rate for the particular engine size and fuel type of the car, HMRC will accept that there is no taxable profit and no Class 1 NIC liability.

From 1 December 2018:

Petrol

Engine size (cc)

Pence per mile

1400 or less

12

1401 to 2000

15

Over 2000

22

Diesel

Engine size (cc)

Pence per mile

1600 or less

10

1601 to 2000

12

Over 2000

14

LPG

Engine size (cc)

Pence per mile

1400 or less

8

1401 to 2000

10

Over 2000

15

Notes...

Hybrid cars are treated as either petrol or diesel cars for this purpose.

Mileage Allowance Payments for Employees

Mileage Allowance Payments (MAPs) represent the maximum tax free mileage allowances an employee can receive from their employer for using their own vehicle for business journeys.

An employer is allowed to pay an employee a certain amount of MAPs each year without having to report payments to HMRC.

If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

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